Top 5 cryptocurrencies to watch this week: BTC, AVAX, ALGO, XTZ, EGLD

Over the past 12 years, China has repeatedly tried to curb the growth of the crypto space, but aside from hiccups, the blanket ban on crypto commerce has not changed the long-term growth of cryptocurrencies. This shows that no country can prevent the emergence and growth of cryptocurrencies, even if it is the second largest economy in the world.

In an update on the bank's website, Deutsche Bank analyst Marion Laboure said bitcoin "is likely to remain highly volatile for the foreseeable future" as most people buy it either as an investment or For speculation, not as a medium of exchange.

However, Laboure believes that bitcoin could become the "digital gold of the 21st century," a trend that could last for centuries without major government control.

Daily crypto market data source: Coin360

At Morningstar's annual investment conference, Dennis Lynch, head of asset management at Counterpoint, compared bitcoin to the "South Park" cartoon character Kenny. “I would say Bitcoin is kind of like Kenny in South Park — every episode he dies and then comes back to life,” Lynch said.

As the influence of Chinese FUD (fear, uncertainty, doubt) fades, let’s examine a chart of the top 5 cryptocurrencies that are likely to remain strong in the short term.

BTC/USDT

Bitcoin is again bouncing off the 100-day simple moving average ($41,002), suggesting that the bulls are attempting to defend this level aggressively. The bulls will now attempt to push the price above the 20-day exponential moving average ($45,178).

BTC/USDT Daily Chart Source: TradingView

A descending 20-day exponential moving average (EMA) and relative strength index (RSI) in negative territory suggest that bears have the upper hand. If the price pulls back from the 20-day EMA, the chances of a break below the 100-day simple moving average (SMA) will increase.

Such a move would complete a bearish head and shoulders pattern with a target of $32,423.05.

The bulls will have to push and sustain the price above the $48,843 resistance to open the doors for a possible rally to $52,920. A break above and close above this level could signal a resumption of the uptrend.

BTC/USDT 4-hour chart Source: TradingView

BTC/USDT witnessed a fierce battle between bulls and bears near the neckline. The bulls have pushed the price above the 20-EMA and the next step will be an attempt to clear the overhead $45,200 hurdle.

If they can do this, BTC/USDT will climb to $49,000. Conversely, if the price turns down from the current levels, the bears will attempt to drag the price down to the critical support zone of $41,000-$39,600. A breakout of this range could signal the start of a downtrend.

AVAX/USDT

Avalanche (AVAX) is trading in an ascending channel pattern. The long shadow today shows that the bulls bought aggressively on the dip to the 20-EMA ($61).

AVAX/USDT daily chart Source: TradingView

The rising moving averages and the relative strength index in positive territory point in favor of buyers. AVAX/USDT may now attempt to retest the all-time high of $79.80. This is an important level to watch, as a breach of it could signal a resumption of the uptrend.

AVAX/USDT may then rally to the resistance line of the channel, and if this barrier is broken, the bullish momentum may increase.

Conversely, a pullback from current levels or overhead resistance and a break below $60.04 would signal the start of a further correction towards the 50-SMA ($45).

AVAX/USDT 4-hour chart Source: TradingView

AVAX/USDT has bounced off the 100-SMA, with the bulls trying to keep the price above the 20-EMA. If they manage to do so, AVAX/USDT could start an upward push towards $79.80, where the bears could once again form a strong resistance.

On the downside, the key level to watch is the support line of the channel. A break and close below this support will be the first sign that the bulls may be losing control. If the price breaks below $60.04, it may continue to decline towards $55.

ALGO/USDT

Algorand (ALGO) is trading below the 20-EMA ($1.77), but judging by today’s long shadow, the bulls are attempting to defend the $1.51 support.

ALGO/USDT daily chart Source: TradingView

If the bulls push and sustain the price above the downtrend line, it will indicate that the short-term correction may be over. ALGO/USDT could then rise to $2.15 and then to $2.55.

Alternatively, if the price drops from $1.84, ALGO/USDT could drop to $1.51 again. If the bulls defend this support, ALGO/USDT could remain in the $1.84-$1.51 range for the next few days.

A break and close below $1.51 will signal a possible change in trend. ALGO/USDT could then slip to the next support at $1.15.

ALGO/USDT 4-hour chart Source: TradingView

ALGO/USDT is trying to bounce off the strong support at $1.51, but the rebound may hit a barrier at the moving averages before starting again at the downtrend line.

If the price pulls back from overhead resistance, it will indicate that sentiment remains negative and traders sell on slow rallies. This will increase the probability of a break below $1.51.

This negative view will be negated if the price rises and sustains above the downtrend line. The bulls will then try again to resume the upside.

XTZ/USDT

Tezos (XTZ) rallied sharply from the $4.47 breakout level on Sept. 22, indicating plenty of bargain hunting. On Sep. 23, the bulls pushed the price back above the 20-EMA ($6.10), where it has held since.

XTZ/USDT Daily Chart Source: TradingView

The moving averages are sloping up and the relative strength index is in positive territory, suggesting that the bulls have the upper hand. Buyers may challenge the upper resistance zone of $8.03-8.42.

A breakout and close above this range will signal the start of the next uptrend. XTZ/USDT could then rise towards the psychological $10 mark.

Contrary to this assumption, if the price pulls back from current levels or overhead resistance and breaks below the 20-EMA, XTZ/USDT could drop to $4.47.

XTZ/USDT 4-hour chart Source: TradingView

XTZ/USDT is attempting to bounce off the 20-EMA, indicating that sentiment has turned positive and traders are buying on dips. The bulls are now attempting to push the price above the overhead resistance at $7.50.

If this level is corrected, XTZ/USDT could rise to $8.03, where the bears may form a strong resistance. If the bulls do not give up too much ground at this resistance level, the chances of a break above it will increase.

This bullish view will be invalidated if the price turns lower and breaks below the moving averages. This move could lead the price to drop to $5.50 first and then to $4.47.

EGLD/USDT

Elrond (EGLD) bounced off the 50-SMA ($181), but failed to break above the overhead barrier at $245.80. This shows that bulls are buying on dips and bears are selling on rallies.

EGLD/USDT Daily Chart Source: TradingView

The 20-EMA ($220) is leveling off and the RSI is just above the midpoint, suggesting a balance between supply and demand.

Buyers are trying to sustain EGLD/USDT above the 20-EMA. If they succeed in doing so, the bulls will again attempt to push EGLD/USDT above $245.80. If they succeed in doing so, EGLD/USDT could rise to $303.03.

Conversely, if the bears pull the price lower from current levels, a retest of the 50-SMA will be possible. A break and close below this support could open the doors for a further decline towards the 100-SMA ($132).

EGLD/USDT 4-hour chart Source: TradingView

EGLD/USDT has bounced off the ascending trendline, which shows that traders are buying on dips. The bulls will now attempt to push and sustain the price above the downtrend line. If they succeed in doing so, EGLD/USDT could resume its upward move to $277.88 and then to $303.03.

Contrary to this assumption, if the price turns down from the downtrend line, the bears will try to gain an advantage by pulling the price below the uptrend line. The move could pave the way for further corrections.

Cointelegraph Chinese is a blockchain news information platform, and the information provided only represents the author's personal opinion, has nothing to do with the position of the Cointelegraph Chinese platform, and does not constitute any investment and financial advice. Readers are requested to establish correct currency concepts and investment concepts, and earnestly raise risk awareness. In view of the fact that China has not yet issued policies and regulations related to digital assets, users in mainland China are advised to be cautious in digital currency investment.